Amazing Facts About South Africa’s Real Estate Market
When thinking of Africa, you automatically imagine lions, elephants, zebras and other wildlife. In reality, the continent is developing rapidly and you will likely not find these wild animals parading the streets any longer. African countries are among of the quickest growing economies of 2018, with Ethiopia sitting at the number 5 position – globally.
Aside from economic expansion, African countries also have some of the highest high population growths, leading to a huge demand for housing and retail space. This is the reason Africa is now one of the hottest places when it comes to property investment.
Here are some of the lesser known facts about Africa’s booming real estate industry:
Developers are usually non-African.
Foreign investment is dominating the real estate market in Africa, where investors are usually either Asians, Russians or Middle Easterners. Two key factors behind the appeal are a growing tourist industry and favorable exchange rates. Big hotel groups are always expanding their African portfolios, though other attractions outside tourism are also in the mix.
Housing is generally cheap.
High-end homes are affordable to only a few Africans. This is why luxury properties in the continent are mostly owned by foreigners. If you’re aiming for a long-term investment, affordable housing is probably risky business. Selling a single luxury villa can earn you more than several low-cost homes. For one, you need to find a local bank that will grant mortgages to low-income buyers.
Even if prices went down to $10-20,000 for a simple modern unit, most Africans will still find unattainable. Yet all throughout Africa, there remains a tremendous need for such type of dwelling. However, if you’re a developer who wants to do business while uplifting the lives of others, this is a good way to … Read More..Read More →